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Super/Pension

2019

Annual Report

YourChoice Super Annual Report 2019

Contents

From the Chair 4

Governance 6

Investments: the year in review 11

Investment options 13

Investment allocation 16

Investment performance 17

Investment managers 18

What’s new in superannuation 21

Important information 23

Directory 31


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About this Annual Report

This Annual Report is for members of YourChoice Super, a sub plan of MAP Superannuation Plan (Div II) ABN

71 603 157 863, APRA Registrable Superannuation Entity No R1001587, referred to in this Annual Report as the

Fund or the Plan.

This Annual Report has been issued by Diversa Trustees Limited (the Trustee or Diversa Trustees or We) ABN

49 006 421 638, AFSL 235153 RSE Licence L0000635 as Trustee of YourChoice Super. The Sponsor of MAP

Superannuation Plan and the appointed Promoter of YourChoice Super is OneVue Wealth Services Pty Limited

ABN 70 120 380 627 AFSL No. 308868 (OneVue Wealth).

This Annual Report forms Part 2 of the annual periodic information. Your Annual Member Statement forms

Part 1 of the annual periodic information and should be read in conjunction with this Annual Report.

The information in this document is intended to provide you with general information only and does not take

into account one or more of your personal objectives, financial situation and needs. Before making any

financial decisions about YourChoice Super, it is important that you consider the current product disclosure

statement (PDS) relevant to your membership and consider your particular circumstances and whether the

particular financial product is right for you. The current PDS for the product is available by calling Member and

Adviser Services on 1800 640 055 or online at the Secure Online Portal. You should consult a financial adviser if

you require personal advice.


Welcome to the Annual Report for 2019

As Promoter of the Fund, OneVue Wealth understand that super is not only important as an investment, but it

is a key part of the plan for your retirement.

We are constantly looking for new ways to improve the offering. There is industry recognition for this with

Investment Trends ranking OneVue 4th in its 2019 Platform Benchmarking and Competitive Analysis Report.

Investment offering expands

There are two types of investment options that are offered through the Fund – pooled investment options and

super wrap investment options.

Pooled investment options are straightforward and easy to use – you select an investment strategy and are

then invested in a range of diversified investments in order to meet that strategy.

Last year the Trustee appointed Mercer Investments (Australia) Limited (Mercer) as the Asset Consultant to the

Fund. Mercer is one of the world’s largest asset consultants with an international network of approximately

12,000 experienced investment professionals, and have been providing professional investment services to

Australian clients for 45 years.

Through this appointment YourChoice Super is able to access the size and scale of Mercer to provide quality

investment manager for your retirement savings.

Further information about Mercer can be found in the ‘Investments’ section and Mercer have provided the

‘Year in Review’.

With super wrap investment options, we are committed to offering you a broad range of investment options

that include cash, term deposits, managed funds, managed accounts and ASX listed securities. You and your

adviser can select from that choice to build your own investment strategy.

Watershed wins

Watershed is one of the investment managers in super wrap, with managed portfolios of direct assets in both

ASX listed and international equities. Watershed was the winner of the 2019 IMAP Managed Account Award

for International Equities.

Ongoing improvements

We continue to enhance the product in a number of ways to improve the service provided to you:

From 1 June 2019

We simplified the fee structure for the product to make it easier to understand what you are paying,

Added the ability to access corporate actions for ASX listed securities,

Removed withdrawal fees (and exit fees), and

Implemented managed funds enhancements that speed up processing of managed funds and in many

cases extended cut off times.

Early in 2020, we will be releasing a new look suite of disclosure documents to make information about the

product easier to find and understand.

We will continue to communicate important changes to you or your adviser as they occur.

Brett Marsh

Head of Product, OneVue Wealth

YourChoice Super Annual Report 2019 5

Trustee Governance

The Trustee of the Fund is Diversa Trustees Limited (Diversa Trustees, Trustee) and is responsible for the

ongoing management of the Fund. As Trustee, Diversa Trustees employ specialist providers to help look

after the Fund and its investments which are outlined in the ‘Directory’ section at the end of this Annual

Report.

As Trustee, Diversa Trustees aims to ensure that all legal and compliance obligations are properly met. It is

responsible for compliance with the Trust Deed of the Fund, including ongoing satisfaction of legislative

requirements, and monitoring of risk controls as specified in its’ risk management framework. In summary,

the Trustee’s role generally incorporates:

fund registration,

issue of disclosure documents,

compliance monitoring against legislative and regulatory requirements, and

risk management.

The names of the Directors of the Trustee as of 30 June 2019 are as follows:

Vin Plant (Chair),

Murray Jones,

Robyn Fitzroy,

Andrew Peterson, and

Fiona McNabb.

Notes:

- Garry Wayling ceased to act as a Director (Diversa Trustees Limited only) on 28 June 2019

- Andrew Peterson and Fiona McNabb commenced as Directors of the Trustee on 28 June 2019

Remuneration

The Directors of the Board did not receive and are not due any remuneration from the Fund in connection

with the management of the Fund. Directors fees are paid by Diversa Trustees Limited.

Board committees

The Board of the Trustee is committed to strong principles of corporate governance, including continuous

improvement of its performance and processes.

The following committees assist the Board, which in some cases involves engagement of external experts:

Investment Committee, and

Audit, Compliance and Risk Committee.

No penalties were imposed this year on any responsible person under Section 38A of the Superannuation

Industry (Supervision) Act 1993.

Professional indemnity insurance

Diversa Trustees has professional indemnity insurance to protect the Trustee, its directors and the Fund

against certain losses or liabilities. The indemnity insurance cover is subject to the terms and conditions of

the relevant policy and complies with the requirements of Section 912B of the Corporations Act 2001.


The Trust Deed

The governing rules of the Fund are set out in the MAP Master Superannuation Plan Trust Deed. The Board

has some powers to alter the Trust Deed. A copy of the Fund Trust Deed can be found online at

mapfunds.com.au.

Compliance

YourChoice Super is regulated and complies with the Superannuation Industry (Supervision) Act (1993) (SIS

Act). The Fund lodges a return with APRA every year and has not received a notice of non-compliance from

APRA. No penalties have been imposed in respect of the Fund under the relevant superannuation

legislation.

Trust

ee G

ove

rnance


Investments

Financial Year to 30 June 2019 in Review

Asset Consultant

The Trustee utilises an independent Asset Consultant to provide advice regarding the investments of

YourChoice Super. The Asset Consultant is Mercer Investments (Australia) Limited.

The underlying investment managers and investment funds utilised by YourChoice Super are appointed and

removed by the Trustee in accordance with YourChoice Super’s investment strategy. Any decision to

appoint/remove a manager or fund is based upon an assessment of the style and performance of the

manager or fund.

Appointment of MERCER as Asset Consultant to the Fund

Mercer Investments Australia Ltd was appointed by the Trustee, Diversa Trustees as the Asset Consultant to

YourChoice Super during the financial year. In this role, Mercer assists the Trustee to set the investment

objectives for the Fund, as well as manage the investment strategy to meet those objectives.

About Mercer

Mercer was founded in 1945 as William M. Mercer Limited in Canada. William M. Mercer Limited was

acquired by Marsh & McLennan Companies, Inc. in 1959. The firm is listed on the New York Stock Exchange.

Mercer’s Australian operations commenced in 1971, with investment advice provided to Australian

organisations since 1972.

The Mercer portfolio management teams now manage approximately US$200 billion worldwide, with

approximately A$33 billion invested on behalf of clients in Australia and New Zealand. Mercer has an

international network of over 1200 highly experienced investment professionals working in over 43

countries with sophisticated investment tools which contribute to providing diversified portfolios that

outperform in even the most volatile markets.

Managing YourChoice Super

The YourChoice Super investment strategy involves setting the allocation to the various asset sectors in

which each option invests (Strategic Asset Allocation) and selecting and managing the underlying

investments which make up the portfolio. The underlying investments are made up from Mercer Multi-

Manager Funds (MMF’s) which invest with selected investment managers that have specialist skills in each

selected asset sector.

The process for determining the optimal Strategic Asset Allocation for the Fund is driven by Mercer’s latest

global investment and risk management insights, robust modelling capabilities and reliable capital market

assumptions. Qualitative analysis is reinforced by rigorous quantitative risk modelling involving stress-

testing, risk factor analysis and liquidity analysis utilising Mercer proprietary investment tools.


Selection of the managers for the Fund is based on Mercer’s rigorous manager ratings process designed to

identify high quality investment strategies with the greatest probability of outperforming their peers. The

process is forward-looking and consistent across regions and asset classes. It involves a combination of on-

site visits to managers, discussion amongst Mercer researchers, qualitative views, quantitative analysis, the

direct experience of Mercer consultants, and ongoing reviews. Mercer constructs an optimal blend of

managers for the Fund to achieve the objectives set for the portfolio.

Selected managers are regularly monitored to ensure they continue to invest according to their planned

strategy and to track any material changes affecting managers. Any significant change to, or concern with

research inputs, investment process, or underlying personnel may trigger a review, and subsequently, the

termination and replacement of the manager.

Mercer commenced environmental, social and governance (ESG) research in 2005, and has since integrated

ESG factors into the standard manager research process for all asset classes, with a rating specific to ESG

integration capabilities. ESG integration provides additional risk management views and analysis and

continues to be woven into standard manager selection processes.

Investment commentary

Investment markets delivered strong returns in the 2019 financial year despite the

12 months being a particularly volatile period. Asset class returns for the period

were as follows:

Asset class Return* (%)

Cash 1.8

Australian Bonds 3.1

International Bonds (hedged) 1.9

Australian Shares 13.0

Australian Property Securities 13.0

International Shares (hedged) 10.8

International Shares (unhedged) 15.0

Emerging Share Markets (unhedged) 12.3

*Capital and income return

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The year started on a strong note with most equity markets posting positive September quarter returns.

This was primarily supported by robust economic growth in the US, which led the Federal Reserve to raise

rates for a third time in 2018, moving closer to normalising its monetary policy. Against this positive

economic backdrop, US-China trade tensions continued to build with further tariffs imposed by the US on

US$200bn of Chinese imports and China retaliating with tariffs on US$60bn of US imports.

The December 2018 quarter saw a sharp reversal in the positive market sentiment. Share markets

experienced sharp declines, mostly attributable to concerns that the rising US interest rates would slow

growth, and the rising global trade tensions were unlikely to be resolved in the near term, further adding to

a slowing economic environment. As a result, investors moved to defensive assets, reflected in meaningfully

lower bond yields over the December 2018 quarter.

Shares rebounded strongly in the first quarter of 2019, with the turnaround largely due to the Federal

Reserve reversing its tightening policy bias in favour of a more accommodative monetary policy, raising

market expectations for the first cut in the US federal funds rate in over a decade. This was followed by a

similar stance adopted by other central banks. The delay of Brexit beyond March to October 2019 also

provided some respite for the UK equity market. Although trade tensions continued to weigh on market

sentiment, with further tariff increases announced by both the US and China in May, investors remained

hopeful that the resumption of trade talks would finally lead to a trade deal between the US and China.

Global equity markets ended the year on a strong note, posting positive returns over the final quarter of

2019. The prospect of lower rates into the new financial year outweighed the negative impact of expected

slower global growth and ongoing geopolitical risks centred on the unresolved US-China trade dispute.

Bond markets performed particularly strongly over the year as yields reversed course and trended

downwards. Australian bonds (11.0%) outperformed Global bonds (7.2%, hedged), due to comparatively

greater yield decreases in Australia. Over the year, Australian 10-year bond yields decreased from 2.64% to

1.32%, compared to US 10 years which fell from 2.85% to 2.00%. Notably, the spread between US and

Australian 10-year bonds remained negative and widened further over the year.

In Australia, economic growth slowed further to a meagre 1.4% for the year to June 2019, the weakest

growth rate since the Global Financial Crisis. Amid the softening economic conditions, the Reserve Bank of

Australia ended a 34-month pause to cut the official cash rate by 0.25% to a historic low of 1.25% in June

2019. This was done in a bid to combat weakening employment, wages and inflation.

In spite of the weak economic outlook towards year end, the Australian share market rose 11.4% over the

financial year, with a significant recovery in 2019, boosted by the surprise Coalition victory in May, which

more than offset the volatility during the December 2018 quarter in which the Australian market fell by

8.4%. The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services

Industry began in March 2018, with the final report released in February 2019.

Negative sentiment weighted on financials, particularly big banks, throughout this period. However, banks

experienced a relief rally in the wake of the final report which was light on specific recommendations for the

banks' core business structures. Overall the S&P/ASX300 Financials rose 8.2% over the year,

underperforming the broader share market. Australian Property Securities performed particularly strongly

(19.4%) supported by the falling interest rate environment.

There are a number of signs that global growth is set to slow materially in the current financial year and

global trade tensions are likely to persist for some time. Slower growth and subdued inflation globally are

likely to support further falls in interest rates in the near term. While this environment does not suggest

markets will necessarily fall, investors should be prepared for lower returns in the coming year than

delivered in financial year 2019.

Vincent Parrott

Senior Investment Consultant, Mercer

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Investment options as at 30 June 2019

The tables following contain information regarding the investment options of the Fund for the year ended 30

June 2019. Details of investment options shown are not a guarantee of any particular benefit or return. The

investment option objectives are used by the Trustee to measure the performance of the Fund’s investments.

The investment objectives and strategies of the investment options available to members of YourChoice Super

Pension Account are the same as the objectives and strategies of the investment options available to

YourChoice Super Accumulation Account members, however no tax is applicable to pension assets (except

effective 1 July 2017 for transition to retirement pensions).

CASH* MODERATE PASSIVE MODERATE

WHO IS THIS

INVESTMENT OPTION

DESIGNED FOR?

Members who prefer low

risk and a high level of

security on their account

balance.

Members who seek

exposure to mainly

defensive assets and can

tolerate a moderate level of

risk over three years. This

option invests

predominantly in defensive

assets across most asset

classes.

Members who seek

exposure to mainly

defensive assets and can

tolerate a moderate level of

risk over three years. This

option invests

predominantly in defensive


classes.

INVESTMENT RETURN

OBJECTIVE RBA Cash Rate CPI + 0.5% CPI +0.5% pa.

MINIMUM SUGGESTED

INVESTMENT TIME

FRAME

1 year 3 years 3 years

STANDARD RISK

MEASURE# Very Low Medium Medium

INVESTMENT OPTION

ASSET ALLOCATION

RANGE

Cash

100%

Cash

12.5-50.0%

Australian Fixed Income

15.0– 40.0%

Global Fixed Income

10.0 – 30.0%

Australian Equities

5.0-20.0%

International Equities

5.0- 25.0%

Global Listed Property &

Infrastructure

0.0 – 15.0%

Cash

12.5-50.0%


10.0 – 35.0%

Global Fixed Income

10.0 - 35.0%

Australian Equities

5.0-20.0%


5.0- 25.0%


Infrastructure

0.0 – 15.0%


DEFENSIVE VS

GROWTH STRATEGIC

ASSET ALLOCATION

Defensive

100%

Growth

0%

Defensive

70%

Growth

30%

Defensive

70%

Growth

30%

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BALANCED PASSIVE BALANCED GROWTH

WHO IS THIS INVESTMENT

OPTION DESIGNED FOR?

Members who seek

exposure to a combination

of growth and defensive

assets and can tolerate a

medium to high level of

risk over four years. This

option invests

predominantly in a mixture



classes.

Members who seek

exposure to a combination



medium to high level of

risk over four years. This

option invests

predominantly in a mixture



classes.

Members who seek

exposure to mainly

growth assets and can

tolerate a high level of

risk over five years. This

option invests mainly in

growth assets across

most asset classes.

INVESTMENT RETURN

OBJECTIVE CPI +1.5% p.a. CPI +1.5% p.a. CPI +2.5% p.a.

MINIMUM SUGGESTED

INVESTMENT TIME FRAME 4 years 4 years 5 years

STANDARD RISK

MEASURE# Medium to High Medium to High High

INVESTMENT OPTION

ASSET ALLOCATION

RANGE

Cash

5.0% - 20.0%


10.0% – 25.0%

Global Fixed Income

15.0% - 35.0%

Australian Equities

10.0% - 30.0%


10.0% - 35.0%


Infrastructure

0.0% – 15.0%

Cash

5.0% - 20.0%


10.0% – 25.0%

Global Fixed Income

15.0% - 35.0%

Australian Equities

10.0% - 30.0%


10.0% - 30.0%


Infrastructure

0.0% – 15.0%

Cash

2.0% - 15.0%

Australian Fixed

Income

5.0% – 20.0%

Global Fixed Income

8.0% - 25.0%

Australian Equities

17.5% - 45.0%


22.5% - 50.0%

Global Listed Property

& Infrastructure

0.0% – 15.0%

DEFENSIVE VS GROWTH

STRATEGIC ASSET

ALLOCATION

Defensive

50%

Growth

50%

Defensive

50%

Growth

50%

Defensive

30%

Growth

70%

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PASSIVE GROWTH HIGH GROWTH PASSIVE HIGH GROWTH

WHO IS THIS

INVESTMENT OPTION

DESIGNED FOR?

Members who seek

exposure to mainly growth


high level of risk over five

years. This option invests

mainly in growth assets

across most asset classes,

Members who seek



high level of risk over seven


predominantly in growth


classes.

Members who seek



high level of risk over seven


predominantly in growth


classes.

INVESTMENT RETURN

OBJECTIVE CPI +2.5% p.a. CPI +3.5% p.a. CPI +3.5% p.a.

MINIMUM SUGGESTED

INVESTMENT TIME

FRAME

5 years 7 years 7 years

STANDARD RISK

MEASURE# High High High

INVESTMENT OPTION

ASSET ALLOCATION

RANGE

Cash

2.0% - 15.0%


5.0% – 20.0%

Global Fixed Income

8.0% - 25.0%

Australian Equities

17.5% - 45.0%


22.5% - 50.0%


Infrastructure

0.0% – 15.0%

Cash

0.0% - 10.0%


0.0% – 20.0%

Global Fixed Income

0.0% - 25.0%

Australian Equities

25.0% - 50.0%


30.0% - 50.0%


Infrastructure

0.0% – 15.0%

Cash

0.0% - 10.0%


0.0% – 20.0%

Global Fixed Income

0.0% - 25.0%

Australian Equities

25.0% - 50.0%


30.0% - 50.0%


Infrastructure

0.0% – 15.0%

DEFENSIVE VS GROWTH

STRATEGIC ASSET

ALLOCATION

Defensive

30%

Growth

70%

Defensive

15%

Growth

85%

Defensive

15%

Growth

85%

* The funds in your cash option are on deposit with Australia and New Zealand Banking Group Limited, ABN 11 005 357 522. We will not withdraw any

part of your money except at your direction.

# Standard risk measure guidance: The standard risk measure is based on industry guidance to allow you to compare investment options that are

expected to deliver a similar number of negative annual returns over any 20-year period. The standard risk measure is not a complete assessment of all

forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a

customer may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a

negative return. Customers should still ensure they are comfortable with the risks and potential losses associated with their chosen investment option(s).

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Investment allocation

The following table provides information on the portfolio asset allocation for all of the YourChoice Super

pooled investment options as at 30 June 2019.

Asset allocation by asset class as at 30 June 2019

CASH

AUSTRALIAN

FIXED

INCOME

GLOBAL

FIXED

INCOME

AUSTRALIAN

EQUITIES

INTERNATIO

NAL

EQUITIES

GLOBAL

PROPERTY

CASH 100.0% 0.0% 0.0% 0.0% 0.0% 0.0%

MODERATE 27.29% 29.11% 13.17% 13.00% 14.80% 2.63%

PASSIVE

MODERATE 33.27% 20.53% 17.11% 11.98% 13.69% 3.42%

BALANCED 16.73% 15.12% 16.64% 21.99% 24.98% 4.55%

PASSIVE

BALANCED 11.62% 16.35% 18.26% 22.32% 25.36% 6.09%

GROWTH 6.67% 9.21% 12.36% 30.70% 43.77% 6.30%

PASSIVE

GROWTH 9.94% 8.60% 12.43% 28.72% 32.67% 7.65%

HIGH

GROWTH 4.75% 3.69% 5.33% 38.34% 44.61% 3.28%

PASSIVE

HIGH

GROWTH

30.98% 3.01% 4.34% 26.04% 32.96% 2.76%

Further information regarding the Fund’s investment options for accumulation and pension Account members

is available in the current PDS and PDS Guides relevant to your membership in the Fund. These documents are

available by phoning Member and Adviser Services on 1800 640 055 or online at the Secure Online Portal.

You should consider the most up to date PDS and Guides where applicable, Annual Report and any Significant

Event Notices provided to you when choosing an investment option.

Derivatives

The Trustee does not enter into any derivatives contracts on its own account. However, external managers may

use derivatives instruments and hedging procedures to protect an investment from adverse movements in the

investment market, but may not gear the investment (‘Gearing’ is a measure of borrowing against assets or

borrowing to fund investments. The Fund holds no derivatives.


Investment performance

A superannuation funds investment performance typically varies over time. Because superannuation is a long

term investment, longer term returns (such as 5 and 10 investment returns) smooth out short term results.

Depending on the nature of each investment option (including its risk profile), an investment option may

experience negative returns from time to time and it is generally not appropriate to assess the performance of

an investment option by the return for a single year or other short term periods.

Actual returns will be determined by the investment strategy adopted and prevailing market conditions. The

Fund’s monthly investment performance information is also made available by phoning 1800 640 055 or online

at the Secure Online Portal. Information on investment performance relating to your Account specifically is

provided in your Annual Member Statement for the year ended 30 June 2019.

For fair comparison purposes, the following returns are for pooled investment options only, and are net of all

investment fees, administration fees and taxes. For super wrap investment options, please see your Annual

Member Statement. Past performance should not be relied upon as an indication of future returns.

YourChoice Super – Accumulation Returns (as at 30 June 2019 2)

INVESTMENT

OPTION 20191 20181 20171

5 YEAR

COMPOUND

RETURN1

10 YEAR

COMPOUND

RETURN1

RETURN

SINCE

INCEPTION3*

INCEP

TION

DATE

CASH 1.56 N/A N/A N/A N/A 1.53 Oct 17

MODERATE N/A N/A N/A N/A N/A N/A

PASSIVE MODERATE N/A N/A N/A N/A N/A N/A

BALANCED* 4.59 N/A N/A N/A N/A 6.42 Aug 17

PASSIVE BALANCED 5.71 6.58 6.19 N/A N/A 6.16 June 16

GROWTH N/A N/A N/A N/A N/A 13.2

PASSIVE GROWTH N/A N/A N/A N/A N/A 13.17

HIGH GROWTH4 8.71 12.00 N/A Mar 17

PASSIVE HIGH

GROWTH 11.85 N/A N/A N/A N/A 13.17 Aug 17

1. One year returns are to 30 June 2019, and compound returns are annualised averages to 30 June 2019.

2. All investment returns are net of investment fees and taxes, and exclude fees charged to members directly such as administration or activity fees.

3. When the 5 or 10 years compound return is unable to be determined, the since inception return is provided.

4. Returns are not reported for High Growth as there have been periods where there has been no investment in the option.

Refer to the SEN on the Mercer investment transition of pooled investment options and PDS and Investment Guide for further information. Further

details on the transition of pooled investment options and underlying investments to Mercer can be found in Investment - Year in Review.

The assets of the Fund are invested in a range of investment funds or products. The table below provides

information regarding the Fund’s total holdings in the investment funds or products of the underlying fund

Neither past performance nor volatility is not a reliable indicator of what may happen in the

future. Neither capital nor returns are guaranteed.

Past performance is calculated net of investment fees and taxes, excludes fees charged to

member Accounts directly, and does not take into account inflation.


Investment managers

The assets of the Fund are invested in a range of investment funds or products. The table below provides

information regarding the Fund’s total holdings in the investment funds or products of the underlying fund

managers managed the investment funds or products in which assets of YourChoice Super were invested as at

30 June 2019.

ANZ Bank Cash

Mercer (Australia) Pty Ltd

Note: the underlying fund managers utilised by the Trustee for investment of the Fund’s assets may be

changed from time to time at the absolute discretion of the Trustee. They are shown in this report to provide

historical information about the investments of the Fund during the year. You have no ability to choose the

underlying fund managers utilised by the Trustee.

Concentration of assets

As at 30 June 2019, the following underlying investments exceeded 5% of the total assets of the YourChoice

Super:

Macquarie Investment Management 2019 2018

ANZ Bank Cash 5.8% 9.3%

Mercer Investments (Australia) Limited 77.8% 6.2%

Macquarie Investment Management N/A 23.6%

Bennelong Avoca & Australian Equity Partners N/A 12.6%

Blackrock Investment Management (Australia) Limited N/A 11.0%

T-Rowe Price International Ltd N/A 6.9%

Smarter Money Investments Pty Ltd N/A 6.5%

Other considerations

The Trustee does not take into consideration labour standards or environmental, social or ethical

considerations in the selection, retention or realisation of the Fund’s investments. However, any external

investment managers of underlying investments may choose to take into account such considerations when

making their investment decisions.


What’s new in superannuation

This update was compiled as at November 2019 and is subject to change. For up to date information relating to

taxation of superannuation, go to ato.gov.au or contact the Fund.

Over the past financial year, there have been several changes to laws surrounding superannuation, some of

which may apply to you.

The First Home Super Saver (FHSS) scheme

From 1 July 2018, you’ve been able to contribute up to $30,000 voluntarily to your super account since 1 July

2017 for the purposes of buying your first home. The benefit of this scheme is that because your deposit is

being saved through super, you could pay less tax than on outside-super savings.

There have been some changes made to, and conditions associated with the FHSS scheme over the past

financial year, though, which came into effect on 1 July 2019. These include:

The FHSS scheme can only be used to buy a home in Australia,

You must apply for and receive a FHSS determination from the Australian Taxation Office before signing a

contract for your first home or applying for the release of your FHSS savings, and

You have 12 months from the date you made a release request to either sign a contract to purchase or

construct your home (and notify the ATO within 28 days of signing) or recontribute the assessable amount

FHSS amount (minus withheld tax) into your super and notify the ATO within 12 months of the valid release

request date.

Protecting Your Superannuation Package Legislation

Changes to your insurance cover

From 1 July 2019, with the implementation of the Protecting Your Superannuation Package legislation, if your

account is considered “inactive” – that is, the account hasn’t received a contribution or rollover for 16 months

(regardless of your account balance), your insurance cover will be terminated.

The Fund regularly communicates with members to provide notifications of the possible cancellation of their

insurance at 9 months, 12 months and at 16 months after the account has last received a contribution. Where

members wish to retain their insurance cover, they may ‘Opt In’ by completing and forwarding or emailing to

the Fund the Opt In to maintain or reinstate insurance cover form, and/or completing and forwarding or

emailing to the ATO notification of not being an inactive member.

Both of these forms can be found on the Secure Online Portal in the FAQ/Forms tab.

Caps on certain fees

From 1 July 2019, a cap will be applied on administration fees, investment fees and certain costs charged to

your account if your account has a balance of $6,000 or less on the last day of the financial year (or when the

account is closed).

That cap is 3% of your account balance. If you’re charged more than that during the financial year, you’ll be

refunded the excess within three months from the end of the financial year, or at the time you close your

account.

In addition to the above, exit fees have been banned on all super accounts. Please note that other fees might

still apply.


Unclaimed Super Monies Act (Amendment)

Treatment of inactive low-balance super accounts

From 31 October 2019, if you have an inactive low-balance account, the ATO will try to match said account

with your active one. This also applies to accounts identified as being low-balance and inactive from 30 June

2019, which must be transferred to the ATO by 31 October 2019.

An inactive low-balance account is defined as:

Having an account balance lower than $6,000,

For the past 16 months the member:

hasn’t received any rollovers or contributions,

hasn’t completed a request to change investment options,

hasn’t met a prescribed condition of release,

hasn’t made a binding beneficiary nomination, or hasn’t made an amendment to an existing

nomination,

hasn’t changed their insurance coverage,

the account holder hasn’t given notice to the Commissioner of Taxation that the account is not an

inactive low balance account, or

the superannuation provider was not owed money.

Further information can be found on the ATO website at https://www.ato.gov.au/Individuals/Super/In-

detail/Growing-your-super/Inactive-low-balance-super-accounts/.

Changes to the Work Test

From 1 July 2019, an exemption from the Work Test for voluntary contributions will apply if you’re between 65

and 74 and have an account balance below $300,000. The new exemption means you will be able to make

voluntary contributions for one more year after you stop working. The Work test exemption allows an

individual’s super fund to accept voluntary contributions made by individuals aged between 65 to 74 for an

additional 12 months.

This exemption applies for a further 12 months from the end of the financial year in which you last met the

Work Test. It doesn’t apply if you’ve used the Work Test exemption previously.

In addition, from 1 July 2020, if you’re between 65 and 66 you’ll be able to make voluntary super contributions

without meeting the Work Test. On top of that, you will also be able to make up to three years of non-

concessional contributions under the bring-forward rule.

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https://www.ato.gov.au/Individuals/Super/In-detail/Growing-your-super/Inactive-low-balance-super-accounts/

https://www.ato.gov.au/Individuals/Super/In-detail/Growing-your-super/Inactive-low-balance-super-accounts/


Coming Soon

Putting Members Interests First Act 2019

(being implemented in the 2019/2020 financial year)

This Bill was passed by Federal Parliament in September 2019, and will be implemented on 1 April 2020.

It is designed to protect low balance accounts and the superannuation savings of members aged under 25

from balance erosion due to insurance coverage they may not need.

From 1 April 2020, insurance cover must now be offered on an opt-in basis – meaning you’ll have to choose to

participate in insurance cover, rather than having it applied by default – if you’re under 25 or have a balance

less than $6,000.

There is one exception to this, and that’s if you work in what’s determined to be a “dangerous occupation”

such as the police force, truck driving, farming or concreting.

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Important information

Abridged financial information

Set out below is the abridged financial information relating to the MAP Superannuation Plan and sub plan

YourChoice Super*.

Statement of MAP Superannuation Plan consolidated financial position (as at 30 June

2019)*

2019

$’000

2018

$’000

Opening net assets

(as at 1 July 2016) 583,440 476,495

Increase (decrease) 199,994 106,945

Closing net assets 783,434 583,440

Statement of YourChoice Super member movements (as at 30 June 2019)

2019

$’000

2018

$’000

Opening net assets

(as at 1 July 2016)

96,370 9,982

Increase (decrease) 196,676 86,388

Closing net assets 293,046 96,370

*The financial accounts for MAP Superannuation Plan (Div 11) have been prepared in accordance with accounting standard AASB1056 Superannuation

Entities applicable to reporting periods on or after 1 July 2016. The financial accounts for MAP Superannuation Plan (Div 11) and audit report can be

made available to members on request by phoning Member and Adviser Services (See contact details in the Directory on the back page).

Reserves

The Trustee maintains the following reserves in the Fund for the benefit of members. Reserves are held to meet

licence conditions, facilitate administration efficiency and are invested for the benefit of members.

Operational Risk Financial Requirement

Trustees of super funds are required to establish and maintain an Operational Risk Financial Reserve (ORFR)

which complies with prudential requirements to ensure that the Trustee has sufficient financial resources to

provide for member and/or beneficiary losses arising from an operational risk event such as incorrect benefit

payments due to human or system error, unit pricing errors and loss of data. The reserve is funded from fees

and other costs. Expense recovery fees may include a transfer to the ORFR to meet this regulatory requirement.

Please refer to the current PDS and PDS Guides for more information.


Expense reserve

The Trustee maintains an expense reserve (ER) for costs not related to the administration of the fund. The

expense reserve complies with prudential requirements and is utilised for the payment of fund fees, costs, tax

and levies. Please refer to the current PDS and PDS Guides for more information.

Reserves (at 30 June 2019)

Fund Reserves MAP Superannuation Plan (Div 11) ORFR 2019

2019 2018 2017

$’000 $’000 $’000

Opening balance 1,526 1,526 1,317

Increase (decrease) in Reserves 537 0321 209

Closing balance 2,063 1,526 1,526

Allocating net earnings to members’ accounts

Pooled investment options

Your account balance is equal to the amount of units held multiplied by the applicable unit price(s). The value

of each unit held and the unit price for each investment option changes with the value of the underlying assets

of the investment option.

The unit pricing process for pooled investment options:

We calculate the value of the underlying assets of each pooled investment option once every day.

The value of the underlying assets is divided by the number of units on issue for that investment option.

This is the unit price that will be applied to your transaction request.

Super wrap investments

The net return achieved by the super wrap investments selected by a member, after taking into account gains

or losses of a revenue or capital nature, any applicable expenses or tax, and interest on the cash holdings in

respect of a member, is passed on to the member.

Taxes relating to investment income and capital gains are applied at the Fund level. To the extent practicable,

the effect of these taxes is passed on to members based on the individual investments in their super wrap

investments, however this may not occur in all circumstances or may be based on reasonable estimates.

Members who leave the Fund will not receive the benefit of un-recouped capital losses.

The value of a member’s Fund Account will reflect the performance of underlying investments attributable to

the member’s investments, based on market valuations provided as at the close of business on the previous

day. Updated valuations of your super wrap investments will generally be available online each Business Day

(see the current PDS for more information about available online reports). Income and distributions from

investments will be accrued in your cash holding in the Cash Hub or reinvested in separately managed

accounts if held.

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Refer to the current PDS for more detailed information about the calculation of earnings. The PDS is available

by contacting us on 1800 640 055.

Refer to your Annual Member Statement for information about the gross investment performance of each of

the model portfolios, as well as the net investment performance for your portfolio of investments.

Types of unclaimed super

Superannuation legislation requires the Trustee of the fund to transfer information and superannuation

benefits to the Australian Taxation Office (ATO) when member benefits are classified as Unclaimed Super.

There are two ATO reporting periods each year (by 31 October for the 30 June six-month period, and by 30

April for the 31 December six-month period).

1. Member aged 65years or older – your account has been inactive for two years or more, and we have not

been able to make contact with you for five years.

2. Non-member spouse - An amount payable to a non-member spouse – a payment split for an interest is

due to a non-member spouse, and after making reasonable efforts to contact, the non-member spouse,

and after a reasonable period has passed, we are unable to ensure that the non-member spouse will

receive the amount.

3. Deceased member – the trustee is unable (after reasonable endeavour) to locate a beneficiary to pay your

benefit to.

4. Temporary residents – temporary residents permanently leaving Australia have up to six months to claim

their super and if not claimed the amount will be transferred to the ATO.

5. Former temporary resident member and you have not claimed your benefit after six months from your

visa expiry or cancellation date and you are not an Australian or New Zealand citizen.

6. Small and insoluble lost member – when your balance is less than $6,000 (small lost member account).

and you are considered as:

uncontactable – two pieces of mail sent to you have been returned undelivered, no contributions or

rollovers have been received within the last 12 months, and the fund is satisfied that it will never be

possible to pay an amount to the member (insoluble lost member account)

Holding an Inactive low-balance account – A super account is an inactive low-balance account if all

of the following criteria are met on unclaimed money day where:

no contribution or rollover has been received for 16 months,

the account balance is less than $6,000,

the member has not met a prescribed condition of release,

the account is not a defined benefit account,

there is no insurance on the account, or

the Fund is not a self-managed super fund (SMSF) or small Australian Prudential Regulation

Authority (APRA) Fund.

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When is an Inactive Low-Balance Account considered active?

An inactive low-balance account is deemed to be active if any of the following have occurred within the last 16

months. The member:

Changed their investment options,

Changed their insurance coverage,

Made or amended a binding beneficiary nomination,

Notifies the ATO in writing that they are not a member of an inactive low-balance account, or

Owes the super provider an amount in respect of their membership.

Further information can be obtained from the website ato.gov.au/Individuals/Super/Growing your super

Member statements

Your Annual Member Statement is published online within your Account. Additionally, product updates and

personalised communications are also published to you online.

Superannuation surcharge tax

While the superannuation surcharge was abolished with effect from 1 July 2005, the ATO may still issue

assessments in relation to previous years. Any amounts dedicated by the Fund in relation to the

superannuation surcharge tax payable will be reflected in the transaction section of your Annual Member

Statement.

Eligible rollover fund

Subject to any obligation to pay lost member benefits to the ATO, in situations where your member benefit is

classified as lost super monies, there are circumstances in which the Trustee would pay a member benefit to an

eligible rollover fund (ERF). An ERF receives and invests the entitlements of superannuation fund members in

certain circumstances.

The Trustee may transfer your superannuation benefit to the Plan’s ERF if you become:

an inactive member (that is, you joined the Plan more than 16 months ago, but in the last 16 months there

have been no contributions or rollovers credited to your account), or are

a lost member (that is, two items of written communication from the Plan have been sent to your last

known address and have been returned unclaimed in the last 12 months).

Being transferred to an ERF may affect your benefit because:

you will cease to be a member of the Plan,

any insurance cover you had with the Plan will cease, or

you will become a member of SMERF and be subject to its governing rules.

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The ERF currently selected by the Trustee is:

Super Money Eligible Rollover Fund (SMERF)

Phone: 1800 114 380

Write: PO Box 1282, Albury NSW 2640

Visit: www.smerf.com.au

The Trustee is also the Trustee of SMERF and receives remuneration in this capacity.

Conflicts

The Trustee’s approach to conflicts management is governed by its Conflicts Management Policy, which sets

out the principles and the minimum requirements of the Trustee. Conflicts are identified, recorded and

managed on an ongoing basis via the Trustee’s registers of relevant duties and interests and via other related

Trustee policies, systems and processes. Training and awareness with respect to the Trustee’s Conflicts

Management Framework is undertaken annually.

Enquiries and Complaints

The Trustee has set up a formal procedure for dealing with complex enquiries and complaints about

YourChoice Super Account, including insurance. You can make an initial enquiry by phoning Member and

Adviser Services, or you can formally register your complaint by email or by writing to the Complaints Officer:

A summary of the enquiries and complaints process will be provided with an acknowledgement at the time of

your enquiry or complaint.

Phone: 1800 640 055

Email: [email protected]

Write: Complaints Officer

YourChoice Super or YourChoice Pension

PO Box 1282

Albury NSW 2640

We aim to resolve all complex enquiries and complaints quickly and fairly. If you are not satisfied with the final

decision, or we have not responded within 90 days from the date that your complaint is received, you may

lodge a complaint with the Australian Financial Complaints Authority (AFCA), our external dispute resolution

(EDR) scheme.

Commencing from 1 November 2018, AFCA is an EDR scheme that deals with complaints from consumers in

the financial system. AFCA replaced the Superannuation Complaints Tribunal.

Strict time limits apply for lodging certain complaints with AFCA; otherwise AFCA may not be able to deal with

your complaint.

To find out if AFCA can handle your complaint and determine the type of information you need to provide,

AFCA contact details are as follows:

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Phone: 1800 931 678


Write: Australian Financial Complaints Authority (AFCA)

GPO Box 3

Melbourne VIC 3001

Visit: Afca.org.au

Access to AFCA is free of charge. You can also find out more about YourChoice enquiries and complaints

procedures via the factsheet at the Secure Online Portal.

Information on request

The following information is available on the Fund website, via the Secure Online Portal and/or by contacting

Member and Adviser Services (refer to the Directory on the back page):

the Fund’s various Product Disclosure Statements (including Investment Guide, Insurance Guide and

Additional Information Guide which are incorporated by reference, where applicable),

the Fund’s regular investment performance,

recent member newsletters,

the Fund’s Trust Deed and Rules,

all forms, e.g. the Nomination of Beneficiaries form.

information about your benefit entitlements, and

any other information that may help you understand particular investments of the Fund or its

management.

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Obtaining further information

Member and Adviser Services

Phone: 1800 640 055


Website: mapfunds.com.au

Mail: PO Box 1282 Albury NSW 2640

Trustee

Diversa Trustees Limited

ABN 49 006 421 638

AFSL No. 235153

RSE Licence No L0000635

GPO Box 3001

Melbourne VIC 3001

Auditors

PricewaterhouseCoopers

ABN 52 780 433 757

Freshwater Place

2 Southbank Boulevard

Southbank VIC 3006

Custodian

JP Morgan Nominees Australia Limited

ABN 75 002 899 961

Level 21, 55 Collins Street

Melbourne VIC 3000

Promoter

OneVue Wealth Services Ltd

ABN 70 120 380 627

AFSL No. 308868

Level 5, 10 Spring Street

Sydney, NSW 2000

Administrator

OneVue Super Services

ABN 74 006 877 872

AFSL No. 246883

PO Box 1282

Albury NSW 2640

Directory

mailto:[email protected]

mailto:[email protected]

http://www.mapfunds.com.au/

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